It is a question that concerns every business owner, and it is especially important when you are a smaller business. Loyalty programs can be a hugely effective tool for customer retention, and big businesses spend millions of dollars a year building customer loyalty. The good news is loyalty programs are not off limits to small business owners. It is more than possible to establish dynamic and interactive customer loyalty programs on a budget.
A loyalty program helps you build relationships with your customers and gives you an edge over the competition. This makes loyalty programs particularly valuable in categories where it is difficult to gain a competitive advantage through product features or price alone.
A well-managed program can also give you insights into your customerís behavior and preferences, making it easier for you to give them what they want. Regular program newsletters, emails, mailings and social media updates enable you to keep the lines of communication open between you and your clients, and encourage feedback and suggestions.